The Australian Bureau of Statistics data on building approvals is positive for dwellings but is dipping for non-residential says, the Urban Taskforce.
“Home approvals for May are at record levels in NSW underpinned by a strong higher density sector,” says Urban Taskforce CEO, Chris Johnson. “While higher density approvals are going well in NSW with 3,091 approvals the smaller state of Victoria has done even better with 3,477approvals.”
“The area of non-residential approvals however does seem to be contracting with a fall from $830,798,000 of approvals in January to only $640,425,000 in May which is the lowest amount for the last two years. This may well be a short term dip or possibly the housing market is capturing most of the building workforce.”
“As the hot residential market inevitably slows down the non-residential sector must fill its place so the dip is of some concern.”
“The Urban Taskforce is keen to develop a clearer reading of performance data on high density homes that separates out town houses, terrace houses and lower scale buildings. It would be helpful for the market to get a reading on the supply of these housing types as well as high density housing stock.”